What is the news?
The US Supreme Court has canceled the tariffs imposed by President Donald Trump, calling them unconstitutional. However, the court did not clarify whether the tariff that has been collected will have to be returned or not. On the other hand, immediately after the decision, Trump has announced to impose 10 percent tariff on all countries. There is confusion regarding how much tariff will be imposed on India. Let us understand the matter.
How much tariff will be imposed on India?
The White House has said that all America’s trading partners, including India, who had entered into an agreement with the Trump administration before the Supreme Court decision, will now face a 10 percent tariff. Even if these countries had previously agreed to pay higher tariffs. News agency ANI The White House official has been quoted as saying that unless another authorization is implemented, only the 10 percent tariff will remain in place.
Will Trump’s 10 percent tariff apply to India also?
After the Supreme Court’s decision, Trump has imposed 10 percent tariff on all countries, which has come into effect with immediate effect. According to a White House fact sheet, the new tariffs will be in effect for 150 days from February 24. There is no clear information as to how this tariff will be applicable to India. Trump had said that this tariff would be in addition to the existing tariff under Section 122 of the Trade Act of 1974.
Why is there confusion regarding tariffs?
Trump had earlier imposed 25 percent tariff on India. Later, due to purchase of oil from Russia, another 25 percent tariff was imposed. In this way the total tariff became 50 percent. At the same time, after the interim outline of the India-US trade agreement was decided, this tariff became 18 percent. After this the Supreme Court canceled the tariffs. Then Trump announced to impose 10 percent tariff on all countries.
Trump said- India will pay tariff, not us
Trump said, “Nothing has changed. India will pay tariffs. We will not pay tariffs. As you know, it is the opposite of what it was before. We made a deal with India and now it is a fair deal. We are not paying them tariffs. Now India is paying.” Regarding Indian Prime Minister Narendra Modi, Trump said that he is very good but was charging more tariffs than us.
earlier situation
How much tariff did India pay before Trump?
Before Trump’s tariffs, America had given ‘Most Favored Nation’ status to India. At that time the average duty on Indian imports was about 3 percent. Most Indian exports attract a baseline Most Favored Nation duty of about 3 percent. There is currently no tariff on mobile phones and pharmaceuticals. Steel and automobiles face sector-specific tariffs under separate national security provisions such as Section 232.
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